GSK to Pay $65 Million for Paxil Antitrust Suit

GlaxoSmithKline (GSK) has agreed to pay $65 million to settle a class action antitrust lawsuit filed over its antidepressant Paxil.

The case dates back to December 2000 when a group of consumers filed suit against GSK legacy company SmithKline Beecham. The plaintiffs alleged that SmithKline used a series of phony patent lawsuits to illegally delay generic competition for Paxil (paroxetine HCl). The lawsuit claimed that the company's actions led to inflated prices for Paxil, thus costing consumers millions of dollars.

The settlement, which was filed in the U.S. District Court for the Eastern District of Pennsylvania, calls for GSK to pay reparations to all U.S. consumers or organizations that purchased or paid for Paxil or its generic alternatives between Jan. 1, 1998, and Sept. 30, 2004.

Under the terms of the settlement agreement, end payors who file appropriate and timely claim forms will be included in the settlement class. Under the distribution plan for the settlement, 27.5 percent of the settlement fund will pay valid claims of consumers and 72.5 percent of the settlement fund will pay valid claims of third-party payors. The agreement must be approved by the court before it can be finalized.